It seems that the food supply shortage and inflation was not enough for the Indian government to learn a lesson. “Why?” you ask? Well, they now seem to be waiting for a few more disasters to happen before they can react. The HRD ministry and the rural development ministry are yet to disburse Rs. 220 billion to Food Corporation of India (FCI). This delay is eventually hampering the supply and distribution of food grains for Mid-Day Meal programmes and employment guarantee schemes. It must be noted that the Mid-Day Meal Scheme is a vital part of primary education across India. Similarly the NREGA and other employment schemes may also fall flat due to late delivery of food grains. Every year the FCI is paid well in advance for the supply of food grains to be distributed through the Public Distribution System (PDS). This delay is also negatively affecting the distribution of food grain to the Armed Forces.

Of the total amount, Rs.200.94 billion is pending with the rural development ministry while Rs.24.57 billon is to be paid by the HRD ministry. This payment-delay is also affecting the cash-credit limit of FCI. Worse, the penal interest above Rs.350 billion charged by banks will also eventually increase the expenditure of FCI. All-in-all it’s ‘wake-up’ time for the Centre.